Overview of the FY14 Budget ProcessFor FY14 (2013-2014 school year) Rockwood projects a $5.1 million deficit. In order to address this deficit, members of the Superintendent’s Cabinet met twice per week from Oct. 31 through Nov. 30 to prioritize the budget and create recommendations for the Board of Education to consider. Cabinet presented its proposed budget to the Board on Dec. 6.

Establishing the Budget TargetIn planning for FY14, Cabinet established a budget target of $10.9 million. This target was established using the district’s scorecard performance indicators to evaluate potential reductions with the goal of minimizing the negative impact to student learning. In addition, input received from our community during the Guiding Change process and Picture Rockwood was also taken into account.

The budget target of $10.9 million addresses the projected $5.1 million deficit while also providing funds in some areas:

Students - summer school and interventions for struggling students

Teachers - professional development to implement the state-mandated common core academic standards and additional time for high school teachers to meet in their professional learning communities

Facilities - some additional funding for the maintenance of facilities and technology

Budget RecommendationsThe list of recommendations presented on Dec. 6 totals $10.3 million. Each recommendation includes a description and associated cost. Download the list or click on the items below for additional details.

The Board and Cabinet will continue discussions on balancing the FY14 budget and the proposed recommendation list during the coming months with final approval of next year's budget in June 2013.

Proposed Budget

1.

Reduce district-level departments’ supplies and services budgets.

$2,216,430.00

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Context and Reality:

District departments were asked to use a zero-based budgeting approach when submitting their budgets.This reduction comes from various lines throughout the budget.

The most notable change is the elimination of $1.2 million for furniture and equipment purchases.Instead of budgeting such items at each building or department, each cabinet member has a small budget to respond to some emergency needs.

Impact:

There will be less funding available for supplies and services for these departments which will reduce the level of service provided throughout the district.

School Level:

District

2.

Reduce the budget allocation for supplies and services to schools.

$300,000.00

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Context and Reality:

During the budget process, each school receives an allocation of funding based on a formula.The allocation was reduced last year by 10 percent and will be reduced another 10 percent next year.

Impact:

There will be less funding available for supplies at the school building level.

School Level:

Elementary, Middle and High

3.

Implement a new budget approach called “recapture.”

$3,000,000.00

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Context and Reality:

Operating revenue projections are based on the most realistic estimates, but these projections tend to be conservative when certain factors are unknown.

Expenditure projections are based on approved budgets and an estimate of salaries and benefits. When controls that limit spending over the approved budget are implemented, it is not uncommon for the district to receive more revenue than expected or to spend less than budgeted.

The FY14 budget will anticipate a 1.5 percent recapture ($3 million). This will be accomplished by adding a negative expenditure budget that will hopefully balance the final revenue and expenditure.

Impact:

For most years, this will allow the district to maximize the resources available to provide programs to students.

If the estimate is too high, the district will lower the fund balance in that year and adjust the recapture amount in the subsequent year. Conversely, the district may increase the following year’s amount if actual recapture exceeds the budgeted amount.

School Level:

District

4.

Charge self-funded programs and grants for indirect costs.

$286,317.00

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Context and Reality:

The Community Education and Early Childhood Special Education funds are supported by user fees.These funds, as well as those supported by state and federal grants, don’t currently reimburse the school district for any overhead costs.These costs could include utilities, processing of payroll or bills, etc.

The Department of Elementary and Secondary Education (DESE) computes an indirect cost rate based on the Annual Secretary of the Board Report submitted by the district.This rate will be applied to the expenditures of these funds to determine the amount of indirect cost to be transferred into the general operating funds of the district.

Impact:

These programs will need to budget for indirect costs; therefore, they will have less to spend on direct costs of the program.

The anticipated indirect costs are $154,700 for community education, $75,117 for special education pre-school and $56,500 for grants.

School Level:

District

5.

Retire Lease/Purchase debt in FY13.

$100,000.00

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Context and Reality:

The district owes approximately $355,000 on an outstanding lease/purchase loan for a lighting project and is paying 4 percent interest on the outstanding balance.

The district must pay $100,000 next year. This proposal would take existing fund balances to pay off the debt.

Impact:

The district would reduce interest cost by lowering the current balance. That would save the 4 percent interest cost and reduce the amount required to balance the budget by $100,000.

School Level:

District

6.

Increase full-day kindergarten tuition.

$57,860.00

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Context and Reality:

Rockwood currently provides for optional, fee-based full day kindergarten.

Impact:

For parents who choose the full day option for kindergarten, the tuition rate will increase by $110.00 per year.

The total annual tuition for a full day kindergarten student will be $3,735.

School Level:

Elementary

7.

Freeze funds for library book purchases.

$350,000.00

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Context and Reality:

Schools receive some funds fromaCentral Services budget to supplement library budgets at the school level.These funds may be used to replace damaged or lost books, to purchase additional books due to enrollment and to enhance the collections at each school.

Impact:

Funds from Central Services would not be available to replace damaged or lost books, to purchase additional books and to enhance the collections at each school.Schools will have to use funds from their school level budget for these items.

School Level:

Elementary, Middle and High

8.

Reduce elementary and high school full-time equivalents (FTE) by 15.43, due to declining enrollment.

$1,080,100.00

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Context and Reality:

Based upon enrollment projections for 2013-2014, there will be a reduction of 15.43 FTE positions (Elementary 11.00, High School 4.43).Each year the districtadjusts staff based on enrollment.

An FTE is the full-time equivalent of one teacher and costs approximately $70,000, including benefits.

Impact:

At the elementary level as enrollment is projected to decline, the number of teachers needed will be less.

At the high school level, if reductions are made to teachers, this will impact classes, particularly in elective courses and Advanced Placement courses. Students will have fewer class choices.

If reductions are made to support staff, there will be an impact of increased job responsibilities and the potential decrease of job quality and customer service.

School Level:

Elementary and High

9.

Reduce Central Services positions.

$257,378.00

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Context and Reality:

Due to some administrator retirements at the district level, there is the opportunity to reorganize positions.

Impact:

Duties will be absorbed by other administrators in Central Services.

School Level:

District

10.

Eliminate the number of extended contract days for Family and Consumer Science (FACS) teachers.

$52,453.00

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Context and Reality:

FACS teachers have an additional 10 days to prepare for and conclude the school year. These days are used to inventory supplies, purchase supplies, clean and service equipment, etc.

Impact:

The number of extended days would be eliminated. FACS teachers will have less time to prepare for and conclude the school year.

School Level:

High

11.

Reduce the number of extra contract days by 10 for Cooperative Career Education (CCE) teachers.

$13,009.00

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Context and Reality:

Teachers have a contract of 190 days.Each high school has one cooperative career education (CCE) teacher who has an extended contract of 20 additional days, for a total of 210 days.

Impact:

CCE teachers will have a contract of 200 days to assist students with job placement and internships.

School Level:

High

12.

Reduce support staff positions – custodians.

$281,630.00

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Context and Reality:

There will be a reduction of 10 custodial positions across the district.

Impact:

There will be adjustments to some of the cleaning schedules. These adjustmentscould impact levels of service.

School Level:

District

13.

Reduce support staff positions – secretaries.

$178,234.00

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Context and Reality:

There will be a reduction of one secretary at each middle schooland one at the Central Services level.

Impact:

Duties will be absorbed by other secretarial or support staff.

School Level:

Middle and Central Services

14.

Reduce support staff positions - maintenance/grounds.

$150,600.00

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Context and Reality:

There will be a reduction of two maintenance technicians and two groundskeepers.

Impact:

There will be adjustments to some of the maintenance and mowing schedules.These adjustments could impact levels of service.

School Level:

District

15.

Eliminate Kindergarten component of Gifted Program at the Center for Creative Learning (CCL).

$140,000.00

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Context and Reality:

The CCL kindergarten staff screens all kindergarten students in their home school during the first semester. These screenings involve multiple visits to each elementary school.Once students are screened, the kindergarten teachers score and evaluate all student assessments.The CCL currently serves kindergarten students from across the district during second semester.

Impact:

This would eliminate districtwide screening services for all kindergarten students in the district.Itwould eliminate services at the CCL for kindergarten students during the second semester.

This results in the estimated reduction of two teachers at the CCL.

School Level:

Elementary

16.

Increase class sizes at the Center for Creative Learning (CCL).

$70,000.00

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Context and Reality:

According to guidelines from the Deptartment of Elementary and Secondary Education (DESE), class or group sizes within the gifted program should not exceed fifteen (15) nor be less than five (5), with an average of ten (10) students per class.

Types of services provided to identified gifted students will vary depending upon the age and grade level of the students, the size of the school district, school schedules, and community preferences. Gifted programs must provide a minimum of one hundred and fifty (150) minutes per week of contact time in which the identified gifted students work exclusively with the teacher of gifted.

Impact:

This would increase class sizes in the units of study during the morning classes and limit the number of offerings in the afternoon.

There would be an estimated reduction of one teacher at the CCL.

School Level:

Elementary

17.

Increase elementary class sizes.

$700,000.00

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Context and Reality:

Currently, elementary class sizes are capped at 23 students for grades K-2, and 25 students for grades 3-5.

This would increase these class maximums to:

K = 23

Grades 1-2 = 24

Grades 3-4 =25

Grade 5 = 26

Impact:

There will be larger enrollments in some elementary classrooms across the district.

This reduction results in the loss of 10 teachers.

School Level:

Elementary

18.

Reduce one half team at Rockwood Valley Middle School.

$175,000.00

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Context and Reality:

Currently, students atthe middle schools are assigned to grade level “teams,” which allows a specific group of teachers to concentrate on the success of a reduced number of students.Middle schools typically have 2 or 2.5 teams per grade level.This typically results in a ratio of five teachers for 150 students.

Impact:

Based on 2013-14 enrollment projections, this will result in the loss of one half team (2.5 teachers) at Rockwood Valley Middle School.

School Level:

Middle

19.

Reduce high school staff by four full-time equivalents (FTE) points.

$280,000.00

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Context and Reality:

This change would reduce staffing across the four high schools by a total of 4.0 FTE. A FTE is the full-time equivalent of one teacher and costs approximately $70,000, including benefits.

Impact:

This would result in a staffing reduction of 4.0 FTE or $280,000 across the four high schools (total).

If reductions are made to teachers, this will impact classes, particularly in elective courses and Advanced Placement courses. Students will have fewer class choices.

If reductions are made to support staff, there will be an impact of increased job responsibilities and the potential decrease of job quality and customer service.

School Level:

High

20.

Increase the distance for providing bus transportation to an estimated distance of 1.5 miles.

$670,619.00

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Context and Reality:

The state of Missouri mandates bus transportation to be provided to students who live more than 3.5 miles from their school. Currently, Rockwood transports students who live less than 3.5 miles from their school.

The district spends $40,000 a day on bus transportation.

Impact:

Parents may need to arrange an alternative means of transportation.There will be increased car traffic on streets and in school parking lots.

Students who live less than 1.5 miles from school will not receive bus transportation unless the district designates the area as a hazardous route location.